Lump-Sum Payment Law and Legal Definition
One time payment of money as opposed to smaller payments over time is known as lump-sum payment. Here, a single sum of money serves as complete payment. It satisfies all of the benefits owed to the recipient. For example, Life insurance payments and lottery winnings. Lump–sum payment is a contrast to installment payment.
“In determining the amount of a lump sum settlement under Workmen's Compensation, the Industrial Accident Board must ascertain the present worth of the claimant's right to compensation, taking into consideration his expectancy of life, and in case of a widow the added contingency of remarriage, the happening of either contingency destroying the right to continued monthly payments, and therefore the right of converting them into a lump sum”. [Cogdill v. Aetna Life Ins. Co., 90 Mont. 244 (Mont. 1931)]
